bamboo airway

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BAMBOO AIRWAY

1. Table of Contents

1. Table of Contents

2. Executive summary

3. <b>Service organization’s Introduction </b>

4. <b>Service Organization’s Situation Analysis</b>

4.1. Business/company Context

4.2 SWOT Analysis

4.3 Competitor Analysis

4.4 PESTLE Analysis

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5. Consumer Research

5.1 Primary Research of the consumer and customer profile

5.2 Key Insights

5.3 Challenges and problems that the service provider is facing

6. Analysis and Evaluation of Current 7Ps Marketing Strategy

7. Recommendations and Conclusion

2. Executive summary:

Bamboo Airway is an air transport company established in 2017. Currently, Bamboo Airway is becoming one of the leading airlines in Vietnam in the mid-range to low-cost customer segment. Desiring to bring high-quality, consistent aviation experience from ground to air to customers, Bamboo Airways focuses on optimizing customer experience at every touch point.

3. Service organization’s Introduction

Bamboo Airways was founded in 2017 and officially opened on January 16, 2019. This is the first private airline in Vietnam to provide high-quality services according to the traditional model (Full-Service Carrier). Below are some highlights about Bamboo Airways:

Inter-regional and inter-continental flight networks are growing: Bamboo Airways prioritizes connecting important airports to meet passengers' travel needs. Currently, we operate a network of routes connecting domestic airports in Vietnam. Thanks to that, Bamboo

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Airways has contributed to turning Vietnam into an aviation gateway to Southeast Asia and Asia in general, while increasing Vietnam's presence on the world map.

Quality and dedicated service: Bamboo Airways always focuses on ensuring the best experience for passengers at every contact point. At the airport, Bamboo Airways operates the largest chain of corporate lounges among private airlines in Vietnam. First Lounge by Bamboo Airways is luxuriously designed with many functional areas, serving needs from work to relaxation.(Bamboo Airways)

4. Service Organization’s Situation Analysis

Bamboo Airways has developed and operated in the difficult context of the aviation industry, especially in 2020 - "the worst year in civil aviation history". Below are some important points about Bamboo Airways' situation:

4.1. Business/company Context

Established in 2017 and officially taking off on January 16, 2019, Bamboo Airways is the first private airline in Vietnam to provide high-quality services under the traditional model (Full-Service Carrier).

On the journey to explore the sky, Bamboo Airways has connected potential

destinations, thereby bringing good values of Vietnamese culture and people to the rest of the world.

Up to now, Bamboo Airways has established itself among the three leading airlines in Vietnam, with three crucial pillars: The leading on-time performance in the domestic aviation industry, the growing inter-regional and inter-continental network, and services of quality and dedication.

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1. The leading on-time performance in the domestic aviation industry.

We always put the satisfaction and benefits of customers at the top priority of Bamboo Airways. Therefore, since our very first days, we have worked tirelessly for the passengers to have safe and punctual flights.

Since 2019, Bamboo Airways has maintained its position as the most punctual airline in Vietnam, with an average punctuality rate (OTP) of over 95%.

2. The growing inter-regional and inter-continental route network

Prioritizing the connection of crucial airports to fulfill the travel needs of passengers, Bamboo Airways has strongly developed the inter-regional and intercontinental flight network in scale and frequency.

We currently operate a flight network connecting domestic airports in Vietnam. As a result, Bamboo Airways has contributed to making Vietnam the aviation gateway of Southeast Asia in particular and Asia in general, thus lifting Vietnamese presence on the world map.

3. Services of quality and dedication.

In the hope of bringing excellent services on every step of the journey, Bamboo Airways has focused on fulfilling customer experience at every touchpoint.

On the ground, Bamboo Airways operates the largest business lounge chains among Vietnamese private airlines. First Lounge by Bamboo Airways is luxuriously designed with many functional areas, meeting different needs of customers from working to relaxing. Exquisite menus embracing the tasty local flavors of each destination will send passengers to cloud nine before boarding.

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Throughout the journey, our cabin crews pay special attention to passengers and

provide wholehearted support to make them feel valued and cared for. Believing “what comes from the heart, goes to the heart,” our cabin crews always welcome passengers with a bright smile and one hand on their hearts.

The modern fleet with diverse aircraft models and sophisticated cabin design offers the utmost convenience to passengers on every flight.

The inflight menus offer a variety of dishes and beverages carrying the world’s

culinary quintessence. The Bamboo Sky entertainment system and in-flight magazines with inspirational content will bring passengers moments of comfort and relaxation.

The service quality of Bamboo Airways has been recognized by numerous customers and media with many prestigious global awards. Proud to offer services beyond expectation,

Bamboo Airways believes that’s the meaning of “More than just a flight.”

4.2 SWOT Analysis:

● Strengths:

○ Bamboo Airways has implemented direct flights to bring international tourists directly to various tourist destinations in Vietnam, saving time and effort for travelers.

○ It has extensive connections and expansion with numerous domestic routes between provinces and cities, facilitating the development and exploration of potential tourist destinations in Vietnam.

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performance in Vietnam, with an on-time rate of 93.8% out of 1,667 flights in 2019, surpassing the industry average of 86.9%.

○ The airline maintains a high passenger load factor of 90% and achieves a 100% safety record on its flights.

○ It offers relatively affordable ticket prices integrated with various travel service packages, not only with FLC but also with other travel partners such as VinPearl and Flamingo.

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faced by FLC Group Chairman Trinh Van Quyet, who has been arrested, causing public concern. (maneko, 2023)

4.3 Competitor Analysis:Vietnam Airlines:

● High ticket prices compared to competitors, limiting affordability for the average income earner.

● Media campaigns predominantly targeting the business segment, with limited success in the low-cost market.

Vietjet Air:

Strengths:

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● Low-cost positioning appealing to a wide range of customers, supported by attractive promotions.

● Strong presence in the Vietnamese market, with high brand recognition and positive perception.

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● Instances of accidents and incidents affecting the airline's reputation and brand image.

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● Vietnamese airports and airline operations rely heavily on technological innovations and support for remote operations.

● Continuous innovation and technological upgrades, especially amid the Fourth Industrial Revolution, are critical for airlines like Bamboo Airways to maintain competitiveness.

● Legal risks stem from non-compliance with regulations and laws governing business operations, particularly in the aviation sector.

● Bamboo Airways, as a publicly traded company, is subject to various laws and regulations, including those related to corporate governance, securities, and aviation.● Changes in laws and regulations, such as airport operating restrictions or

environmental regulations, can impact the company's operations and expansion plans.

(maneko, n.d.)

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5. Consumer Research

5.1 Primary Research of the consumer and customer profile

Age of customers who use airline service Salaries of customers who use airline service

First look at the chart, we could indicate that The average age of the majority of customers (52%) is from 25 to 34 years old. This group of customers has an average income or higher and often travels for work and travel.

Frequency of customers using airline services How do Bamboo’s customers know Bamboo?

Customers usually fly 1 to 3 times/year.

Most of our customers know about our brand through social media. About 85% answered that they know our brand through social media. Some of them also heard about our brand through their relationships and Television.

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Customers who have never used and who have ever used Bamboo

About ⅔ customers who know about our brand have used our service. This is a relatively impressive number

5.2 Key Insights

We will continue analyze those customers who have used Bamboo Airways to

Why did they choose Bamboo?

Why did they choose our service? Most of the answers said that they chose BamBoo Airways because they believe that we are professional and we have good facilities. Moreover, they usually choose us because they consider that we guarantee safety

Insight: A schedule to guarantee security:

Most of our customers choose Bamboo because of its safety, facilities, and professional staff there are numerous unpredictable plane accidents each year, and at the moment, customers' top concern is their health and enjoying the flight. On every flight, make sure the food, aircraft, and equipment are all checked.

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Customers evaluate bamboo's criteria

Most aspects are rated as quite good or better. Facilities have a lot of “very good” rating points. The rest are said to be good or better. We can also see that the amount of

“Good” points is not much lower than “quite good” in the professional staff aspect. It means Bamboo is doing good in providing professionalism

Insight: Give them a feeling of being served:

Humans are the factors involved in the service delivery process. Suppose you are having a good day and meet someone with a face that seems to be suppressing anger, or has a bad attitude, you will feel annoyed all day. Customers are the same, they don't pay to be angry.

Which type of ticket does the customer prioritize?

Customers’ ages of Bamboo mostly range from 25 to 34. They are young people with average to upper-middle income so they mostly choose Bamboo Economy because it is affordable. Some with higher wages might choose Bamboo Premium or Bamboo Business.

How did customers buy Bamboo’s ticket How did customers want to buy Bamboo’s ticket?

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Customers rarely purchase tickets directly from agencies and rarely acquire them from individuals and medium organizations. Instead, they typically research events and purchase tickets directly from the website (41.2%). They also prefer purchasing tickets directly from the Bamboo website (47.1%)

What types of incentives do customers want?

When discussing discounts, most of our customers want to use discounts when booking tickets in advance or free ticket refunds when booking in advance. They care less about serving discounts.

Insight: Money

We have learned that most of our customers are young people with average wages. They usually access our services online and they care more about pricing discounts. Bamboo I will focus on many incentives and upgrade the quality of online translations to meet consumer needs.

5.3 Challenges and problems that the service provider is facing

● Competition: There is growing saturation in the Vietnamese aviation market.

Established airlines are growing their reach while new ones are starting up. Bamboo Airways is under pressure from this fierce competition to both keep its market share and draw in new clients with competitive offerings.

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outside influences Bamboo Airways cannot directly control. Weak economies can result in a decline in travel demand while rising fuel prices can majorly impact profitability. The airline's success depends on its ability to control these outside influences and modify its plans as necessary.

● Maintaining Standards During Growth: As Bamboo Airways expands quickly, it can be difficult to maintain a high standard of service in all facets of its business. This entails keeping up with its updated fleet, properly onboarding new hires, and handling labor relations to prevent snags. An important challenge for the airline is to maintain high service standards while growing quickly.

6. Analysis and Evaluation of Current 7Ps Marketing Strategy

Product strategy

Bamboo Airways' core product is air passenger transport. This includes the essential service of safely transporting passengers to their desired destinations. The core product focuses on the basic function of providing a comfortable and efficient flying experience.

Bamboo Airways has a total of 27 domestic and international routes connecting major cities with domestic tourist destinations and between Vietnam and the world. Bamboo Airways currently has 4 types of products and services, which are:

• Bamboo Economy (Economy Class) • Bamboo Premium (Flexible Economy Class)

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• Bamboo Business (Business Class) • Bamboo First (First Class)

1. Information: Bamboo Airways provides additional services related to information. This includes online website setup platforms, mobile applications, and informational websites that allow customers to easily access trip schedules, make reservations, and manage their affairs. Relevant and accurate information is vital for customers to plan their trips effectively.

2. Order-taking: Bamboo Airways facilitates easy and convenient ticket booking through both offline and online channels. The airline also has codeshare agreements with other airlines, expanding its scope of operations and providing customers with more trip options.

3. Consulting: Bamboo Airways provides consulting services to support customers in making clear decisions about their travel plans. This may require the customer service representative to guide flight options, advise on travel itineraries, and address customer questions or concerns. This consulting service helps customers make informed decisions and enhance their overall experience.

4. Hospitality: Bamboo Airways with its hospitality and warm welcome to customers. Bamboo Airways has an additional business lounge service to help customers enjoy relaxing moments on comfortable green chairs, enjoy the quintessence of traditional Vietnamese cuisine, work or read newspapers. , listen to music, and even bathe in the sophisticated and elegant space of the Bamboo Airways Business Lounge. When arriving at BambooAirways, there is always staff to welcome you at your door and assist with detailed procedures. This additional service helps create a sophisticated, sophisticated and classy image in the minds of customers.

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5. Safekeeping: ensures safety for users and tangible assets. Normally, Bamboo Airways always arranges staff to protect vehicles and personal users for customers. In addition, Bamboo Airways also provides BambooCARE travel maintenance service.

BambooCARE is a comprehensive travel insurance product provided by Bao Viet Insurance Company to Bamboo Airways passengers throughout the journey, including domestic and international flights departing from Vietnam. (applies to both afternoon and recovery).

6. Exceptions: Bamboo Airways handles exceptional cases by addressing customer inquiries and resolving any issues that may arise during the travel experience. This includes effective complaints handling procedures, customer support during flight disruptions, and ensuring timely resolution of issues encountered by passengers. 7. Billing: Bamboo Airways provides smooth and convenient payment services for

customers. This includes transparent pricing, accurate payment information, and various payment methods to facilitate seamless transactions. They aim to make the payment process easy and hassle-free for customers.

8. Payment: Bamboo Airways offers a variety of payment options, ensuring convenient transactions. This can include credit cards, cash, and online payment systems. They offer flexibility in payment methods to accommodate different customer preferences. (Bamboo Airways, 2021)

Pricing strategy (what is the basis for pricing, answer the questions of What, Where, When, and How)

Bamboo Airways, a hybrid airline, has a pricing strategy that takes into account various factors to determine the fares for its flights. The basis for pricing includes

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